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Sav [38]
4 years ago
8

Primera Banco is evaluating two capital investment proposals for a drive-up ATM kiosk, each requiring an investment of $255,000

and each with an eight-year life and expected total net cash flows of $408,000. Location 1 is expected to provide equal annual net cash flows of $51,000, and Location 2 is expected to have the following unequal annual net cash flows:
Year 1 - $82,000
Year 2 - 61,000
Year 3 - 41,000
Year 4 - 33,000
Year 5 - 20,000
Year 6 - 18,000
Year 7 - 89,000
Year 8 - 64,000
Determine the cash payback period for both location proposals
Location 1
years
Location 2
years
Business
1 answer:
Rudik [331]4 years ago
8 0

Answer:

Location 1

Payback period

= Cash outflow/Cash inflow

= $255,000/$51,000

5 years

Location 2

Year    Cashflow   Cumulative cashflow

                $                       $

0         (255,000)          (255,000)

1            82,000             (173,000)

2            61,000             (112,000)

3             41,000             (71,000)

4             33,000            (38,000)

5             20,000            (18,000)

6             18,000                 0

7              89,000

8               64,000

Payback period = 6 years

Explanation:

In location 1, we will divide the initial outlay by the annual cash inflows in order to obtain the payback period since the cash inflows are constant

In location 2, we deduct the initial outlay from the cashflow for each year until the cash inflow is fully recovered.

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faust18 [17]

Answer:

Jessica's for AGI deduction for these costs is:

b. $14.00.

Explanation:

The aggregate gross income (AGI) can be defined as the total amount of income that an individual earns and is used in calculating the amount of income tax that an individual is liable to pay. The AGI can be expressed as follows;

AGI=T×N×W

where;

AGI=aggregate gross income

T=toll amount per way

N=number of times she reported

W=number of way

In our case;

AGI=unknown, to be determined

T=$1.75

N=4

W=2

Replacing;

AGI=(1.75×4×2)=$14.00

Jessica's for AGI deduction for these costs is:

b. $14.00.

4 0
3 years ago
Which explains why the price indicated by p2 on the graph is lower than the equilibrium price?
Vsevolod [243]

According to economic principles, as prices fall, quantity demanded goes up.

What is equilibrium price?

The market price at which the amount of goods supplied and the amount of goods sought are equal is referred to as the "equilibrium price."

The demand and supply model's reasoning is straightforward. For instance, when sugar prices are lower, the market's demand is automatically increased.

Excess demand is depicted in the graph. The price is less than the equilibrium price, as shown by p2 on the graph, since as the price decreases, the quantity demanded increases.

As a result, option (a) As prices fall, quantity demanded goes up is correct.

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6 0
2 years ago
Identify 4 economic resources from the attached picture.​
faltersainse [42]

Answer:

gold,crops, crisis, poverty

7 0
2 years ago
Read 2 more answers
What economic concept is applied in this statement?
ycow [4]

By earning higher levels of education, students learn skills and are more likely to be employed. In their jobs, they use their skills to provide goods and services to others. The economic concept which is applied in this statement is a positive externality.

<h3>What are skills? </h3>

Skills refer a set of qualities or abilities an individual carries in order to complete the task. These skills represent the expertise of any individual in terms of knowledge and talents.

When these skills are learned along with the higher level of education it creates an add-on for the career. These skills include communication skills, problem-solving skills, critical thinking, leadership qualities, and so on.

Therefore, option E positive externality is the correct option for the given statement.

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8 0
2 years ago
Vivian goes to an auction and sees a rare antique lamp that is an identical match to one she already has. At the proper time she
Verdich [7]

Answer:

Most auctions are without reserve and therefore the auctioneer cannot withdraw the lamp.                        

Explanation:

Every auction seems to be either "of-reserve" versus "without-reserve." So the reaction to whether an auction house manages higher bids depends on that form of bidding being carried out. In an offering with reserves, the auction house may reject a higher offer (retain the privilege to reject ...) in which any better bid should be approved in an offering without deposit.

Put differently, the auction house is not obliged to deliver to the top purchaser in a with reserved sale. Essentially, the next bigger raise reflects the minimum price.

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